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09 Jul. 2024

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Tax return for Ukrainians in Germany: who has to file, when, and what are the consequences if they fail to do so?

Finance
For refugees
Germany
Tax return for Ukrainians in Germany: who has to file, when, and what are the consequences if they fail to do so?

Ukrainians who have been granted temporary protection in Germany must comply with local tax laws. Find out who needs to file a tax return and when, as well as the deadlines to avoid penalties

Legal assistance for Ukrainians in Ukraine and abroad
Legal assistance for Ukrainians in Ukraine and abroad
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Ukrainians residing in Germany must comply with local tax laws. For example, according to the German income tax law, every person with a German residence permit (Wohnsitz) or permanent residence (gewöhnlichen Aufenthalt) must pay taxes. This rule also applies to Ukrainian refugees who receive an individual tax number (Steuer-ID).

Please note! As early as September 2024, the Ukrainian tax authorities will have access to bank accounts of Ukrainians abroad. Read more about the impact and what it means for Ukrainians here.

Taxes for employees


Generally, employees in Germany do not have to file tax returns. However, there are exceptions:

1. Tax exemptions: if you want to deduct business expenses or special expenses (Sonderausgaben) from your taxes.

2. Salary from several employers during the year.

3. Receiving benefits that replace wages: unemployment, sickness, childcare, etc.

4. Other payments: severance pay upon dismissal.

5. Joint tax with a spouse or partner.

6. Divorce or widowhood and remarriage in the same year.

7. Requirement of the tax office.

However, if the annual income is less than €12,174 for unmarried couples or €23,118 for married couples, no tax return for 2023 is required.




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Taxes for self-employed persons


Self-employed persons are required to file a tax return, even if they have incurred losses. Freelancers are required to pay income tax and sales tax. Medical services (not cosmetic) and persons with a turnover of less than EUR 50,000 in the current year and less than EUR 17,500 in the previous year are exempt from sales tax.

Deadline for filing a tax return


The deadline for filing the tax return for 2023 is August 31, 2024, but in fact it is September 2, 2024, as August 31 falls on a Saturday. If the tax return is not filed on time, the tax office will impose a penalty of 0.25% of the accrued tax, but not less than 25 euros per month of delay. The maximum surcharge for delay is 25,000 euros.

Ukrainians in Germany should be aware of their tax obligations, especially with regard to filing their tax returns. Filing tax returns on time will help to avoid penalties and maintain financial stability.

We remind you! According to the Tax Code, Ukrainians who are abroad and have income but have permanent residence in Ukraine are residents of Ukraine. This means that they must file a tax return by May 1, 2024. Read more about how to do this, who is obliged to pay taxes twice, and what fees will have to be paid in any case in our previous article.

Photo: Vista Create


Want to know more? Read the latest news and useful materials about Ukraine and the world in the News section.






Ihor Usyk is the Head of Legal Department at Visit Ukraine


If you need additional clarification on double taxation or tax payment, please contact Visit Ukraine's lawyers for advice. Our experts will answer your questions and help you solve your immediate problems. You can order a legal consultation by following this link.




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